Retailing plays a vital role in the world economy. Indian retailing industry
has seen outstanding changes. The retail sector in India, which is dominated by small and unorganized entrepreneurs
consisting of standalone stores, boutiques and kirana stores are drastically
changing its face. In Nashik city, great changes have taken place in organized
retail sector in 2001-2010. Today retailing is a fun-filled experience for the
whole family. Once the Nashik city was in the dominance of unorganized
retailing conventional kirana stores (grocery stores), roadside mini
departmental stores at the panwala shop, the roadside self-service restaurant;
the organized retailing sector has now emerged in a crucial way. This study is
undertaken with view to analyse the changes in consumer shopping behaviour
with special reference to organized retail sector. It also studies the changes
in organized retail sector. It attempts to know different motivating factors
affecting the buying decision in organized retail shops. The study tries to
find out limitations in organized retail outlet.
Changes in consumer shopping behaviour, Changes in organized retail sector.
- Introduction
Retailing acquires an important role in the world economy. Indian retailing
industry has seen outstanding changes. The
retail sector in India, which is dominated by small and unorganized
entrepreneurs consisting of standalone stores, boutiques and kirana stores,
are drastically changing its face. There has been significant expansion in
organized retailing business in recent years. Many big industrial houses have
entered in organized retail sector with very strong- minded future growth
plans. There has been a huge development of new retail formats such as malls,
hypermarkets, supermarkets and lifestyle stores. Change is only constant in
the retail world; survival in organized retail will depend on the ability to
adapt the change. These new retail formats are rising at a rapid speed in
India; there remains a need among Indian businesses to understand the changing
behaviour of consumers towards shopping in these organized retail outlets.
In Nashik city great change has taken place in organized retail sector in
2001-2010. Today retailing is a fun-filled experience for the whole family.
Where the Nashik city was in the dominance of unorganized retailing
conventional kirana stores (grocery stores), roadside mini departmental stores
at the panwala shop, the roadside self-service restaurant; the organized
retailing sector has now emerged in a crucial way. The Nashik market space is
being engaged by shopping malls, chain stores, departmental stores, shopping
centres, food courts, fast food outlet. The shopping behaviour, lifestyle of
Nashik customer, in particular, has been changing noticeably, which can be
viewed as paradigm shift. The significant change has taken place in consumer
shopping behaviour in Nashik city.
The exact understanding of consumer need to help the retailer make product
that likes to be successful in the market. Consumer understanding or an
understanding of changing consumer shopping behaviour is initial point of
strategy formation. It is not only important to understand what consumer knows
about a product? But also what they do not know? Therefore all main players in
retailing are focusing to understand changing consumer shopping behaviour and
develop strategy for tapping consumer. The firm needs to study consumers to
see how its product is perceived, if there is good match, therefore all main
players in retailing are focusing on understanding changing consumer shopping
behaviour and develop strategy for tapping consumer.
- Rationale of the study
“An Analytical Study of changes in Consumer Shopping Behaviour with
special reference to Organized Retail Sector in
Nashik City” is important because of the following reasons:-
1 To understand retail business and practices followed in India. 2 To
understand the changing trends in retail industry.
3 To study the changes taken place in consumer shopping behaviour such as:
- The psychology of consumers, how do they feel, and how do they select between different alternatives;
- The behaviour of consumers while shopping and impact on purchase decisions;
- How consumers’ motivation and decision strategies differ at various modern retail formats?
How and when marketers can adapt and improve their marketing campaigns and marketing strategies
more effectively to reach the consumer.
- To know the impact of changing trends in consumer shopping behaviour and marketing strategies.
- This study would help to provide guidelines and some groundwork for the new ventures before entering in
Nashik, as many new major players interested to enter in Nashik city.
- This Study is also helpful to find lacunae in organized retail sector and also to provide remedial measures
to overcome the lacunae in organized retail sector.
-
Objectives of the Study
Following are the objectives of the study:
- To identify the consumer shopping behaviour with respect to organized retail sector and to know the changes
in consumer shopping
- To know the different motivating factors affecting the buying decision in organized retail
- To study the changes in organized retail
- To find out the limitations of organized retail
- To suggest remedial measures to overcome the limitations of organized retail
-
Hypotheses of the Study
Following hypotheses are constructed for the study:
-
Purchasing pattern of consumer and impulse buying behaviour are interrelated to each other in organized
retail
-
Motivating factors for actual buying and various discount schemes are Interdependent in organized retail
-
Emergence of organized retail sector and changes in consumer shopping behaviour is interdependent on each
-
Different schemes offered by the organized retail outlets influence consumer shopping
-
Research Methodology
5.1. Data Collection:
The data has been collected through following sources –
Primary Data
The primary data has been collected with the application of simple random sampling method. In addition to the
above
techniques of data collection, field visits were done to know the actual changes in consumer shopping behaviour
and changes in organized retail sector and their problems etc.
To collect the required primary data following tools/ techniques of data collection have been used.
- Sampling
- Questionnaires
- Interviews and Field visits
Sampling :-
For the study samples are selected from Nashik city. Following are the samples for the study:
Consumers who are buying from organized retail format (Shopping Mall, Hypermarket, Departmental Stores,
Specialty Stores, Franchisee, Company showroom, Multi-brand showroom, Supermarket, Mom and Pop Store) in Nashik
city.
Employees working at organized Retailing format
Sampling Technique: The samples were selected with the Random sampling method. Sample Size:
Research first carried out pilot survey and observed; average footfall of organized retail shop at weekend and
considered 1% of that average footfall as consumer sample size. For the employee same method has been carried
out considered 1% organized retail sector employee as employee sample sized. (Pilot survey enclosed to
annexure).
Total Consumer Sample Size = 856 Total employee sample size = 150
Primary data has been collected by using two different structured questionnaires. The first questionnaire
consists the
data from consumer who were buying from organized retail format that emphasized exploring consumer hopping
behaviour. Changes in consumer shopping behaviour, individual factors affecting on consumer shopping behaviour
like Cognitive thinking processes which include perception, attitudes, motives and consumer personal
characteristics like demographics, lifestyles, personality traits are also considered in first questionnaire.
The second questionnaire has been applied to collect data from employee working at organized retail format to
find changes in organized retail sector.
Secondary data are essential for most organizational research. The secondary data refers to the information
gathered
by someone other than the researcher. Such data can be internal or external and accessed through the internet,
books, and annual reports.
Secondary Source:
The secondary data has been collected from:
-
Publications of the periodicals, publications of federal bodies/ associations, institutions. Reports of
various committees, Bureau of statistics etc.
-
Published data are also collected from Offices, Research Institutions and Financial institutions.
-
Research papers published and unpublished on the subject were
-
The Journals, Magazine and Newspapers were
The data thus collected is systematically coded, processed, tabulated, classified and analysed by using
electronic
processing methods. The data collected was initially coded. After data collection, tabulation was made;
thereafter analysis and interpretation were attempted. For the purpose of analysis and interpretation the
methods and techniques like Percentage, chi-square test, graphical presentation and charts were used.
The scope of this research is restricted to the organized retail sector in Nashik City. The Study was made by
the
researcher for the period of the 2001-2010. Therefore scope of the study is restricted to this period and
organized retail sector in the Nashik city only.
This research is restricted only to Nashik city. Thus results and conclusions are related and suitable for
Nashik City only. They may or may not be applicable to other areas of the India or any part of the world.
5.4 Limitations of the Study
The research has been done for the period from 2001-2010; therefore whatever data was available in this period
was
utilized for the study. If there is some variation in the data, then the result and conclusions may not be the
same.
All the conclusions are drawn on the basis of the data and information given by the respondents of the organized
retail sectors in Nashik city. But because of the secrecy 100% correct data was not given by them therefore data
is inadequate and incomplete. There is a possibility of deficiencies in the conclusions. However researcher has
tried at his level best to conduct correct and reliable data from the respondents.
-
Review of Literature
-
Dholakia (1999) in article on “Going shopping: key determinants of shopping behaviour and
motivations” published in International journal of retail and distribution management mentioned, the
rationale for shopping is making physical visits to a shopping site . It is considered as a household task
as well as a form of
recreation, relaxation and entertainment along with buying goods.
-
Howard (2007) in his article on “New shopping centre’s: Is leisure the answer?” published
in “International journal of retail and distribution management” believes shopping to be a
leisure pursuit and with the rapid development of shopping centers, both retailers and developers are trying
to make it more of a pleasure activity. Many studies done in an attempt to identify motives of shopping, the
one by Tauber (1972) is a prime Tauber(1972) in his study on “Why do people shop?” published in
“Journal of marketing” identified motives of shopping in a market based economy apart from the
acquirement of products and services and classified them as role playing and social experience outside home
(Howard, 2007).
-
Social reasons are important, as Lunt and Livingstone (1992) describe in Mass Consumption and Personal
Identity, Open University Press, Buckingham that shopping as a spectacle in which the person who is shopping
is
both a spectator and a performer. However, most of these motives that have been mentioned in the table can
be
described as pleasure or leisure related.
-
Many studies that have followed Tauber’s (1972) study have made an attempt to generate some evidence
from reality to confirm these motives. A lot of consumer behaviour researcher have investigated and found
insights into the personal and situational experiences of shopping and its emotional and behavioural effects
(Howard, 2007).
-
Conclusions and Recommendations
-
The first hypothesis for this study is “Purchasing pattern of consumer and impulse buying behaviour
are interrelated to each other in organized retail ”For the testing of this hypothesis, the researcher
has collected data from the consumers’ buying from organized retailsector and the employees’
working at organized retail sector:
-
The Researcher has tested the data at 5% significant Chi-square computed value for above data 11.11 is
greater than table value of 3.84 on 01 degree of freedom. Thus there is an association between purchasing
pattern of consumer and impulse buying behaviour. Hypothesis is accepted.
-
Majority (42.06%) of the consumers purchasing is linked with 25% Plan and 75% impulse buying. Many
consumers’(20.56%) purchasing pattern is linked purely with impulse buying. Only 8.18% consumers
buying patterns linked with plan buying. Hence, it has been concluded that maximum consumers (62.62%) have
impulse buying behaviour.
-
Majority of the employees 20.67% and 36% (i.e. 56.67% in total) are “strongly agree” and
“agree” respectively on the view that purchasing pattern of consumer in organized retail is more
on impulse Only 28.66% respondents are “disagree” with it.
Therefore it is concluded that “Purchasing pattern of consumer and Impulse buying behaviour are interrelated to
each other in organized retail sector”. Hence Hypothesis is accepted.
-
The second hypothesis for this study is “Motivating factor for actual buying and various discount
schemes are interdependent in organized retail sector”.For the testing of this second hypothesis,
the researcher has collected data from the consumers’ buying from organized retail sector and the
employees’ working at organized retail sector:
-
The researcher has tested the data at 5% significant Chi-square computed value for above data 30.48 is
greater than table value of 3.84 on 01 degree of freedom. Thus there is association between motivating
factor for actual buying and various discount schemes. Hypothesis is accepted.
-
Majority of the consumers e. 34.70% and 23.13% are “strongly agree” and “agree”
on the view discount schemes as a main motivation factor at organized retail. Very few consumers (i.e.
22.90%) are “disagree” and “strongly disagree” to discount schemes as a main
motivation factor at organized retail.
-
Majority of the employees 26% and 41.33% (i.e. 67.33% in total) are “strongly agree” and
“agree” on the view that various discount schemes at organize retail as main motivating
factor for actual buying. Very few employees (i.e. 16%) are “disagree” and “strongly
disagree” with the statement that various discount schemes at organize retail are main motivating
factor for actual buying.
Therefore, it has been concluded that, “Motivating factor for actual buying and various discount schemes
are interdependent in organized retail sector”. Hence the Hypothesis is accepted.
-
Third hypothesis for this study is “Emergence of organized retail sector and Changes in consumer
shopping behaviour are interdependent on each other”.For testing of this third hypothesis, the
researcher has collected the data from the consumers’ buying from organized retail sector and the
employees’ working at organized retail sector.
-
The Researcher has tested the above data at 5% significant level. Chi-square computed value for above data
13.29 is greater than table value of 3.84 on 01 degree of freedom. Thus there is association between
emergence of organized retail sector and changes in consumer shopping behaviour. Hypothesis is accepted.
-
Majority of the employees 20.67% and 40.67% (i.e. respectively total 61.34%) are “strongly
agree” and “agree” on the view that consumer shopping behaviour in Nashik has changed.
Very few employees’ (i.e. 21.32%) are “disagree” and “strongly disagree” with
the statement consumer shopping behaviour in Nashik has changed significantly.
-
Majority of the employees 42.67% and 24.67% (i.e. respectively total 67.34%) are “strongly
agree” and “agree” with the view with emergence of organized retail sector there is change
in the shopping behaviour of consumer. Very few respondents (i.e 18.68%) are “disagree” and
“strongly disagree” to emergence of organized retail sector there is change in the shopping
behaviour of consumer.
Therefore it has been concluded that, “Emergence of organized retail sector and Changes in consumer
shopping behaviour are interdependent on each other”. Hence the, Hypothesis is accepted.
-
Changes in Consumer Shopping Behaviour
Traditional Outlook to Modern Outlook,
ii. Shopping as a necessity to Shopping for pleasure,
iii. Itemized Purchase to Bulk Purchase,
iv. Prepared food to readymade food,
v. Conservative spending to Liberal spending,
vi. Increasing buying during Holidays and festival seasons.
-
Consumers agree with the view that “there are significant changes in post purchase action at organized
retail shop”
Majority of the consumers are agreed with the statements (statements are related to changes in consumer
shopping behaviour):
“I have started shopping with my family” “I often check price between stores”
“I buy more than what I plan at retail” “I have stopped visiting the old shop”
“My purchasing pattern is more on impulse buying”
“I feel significant changes have taken place in my lifestyle ad shopping behaviour”
It is found that, maximum consumers realized changes in their shopping behaviour.
-
Many consumers have stopped visiting old shops.
-
Many consumers have started shopping with their
-
Many Consumers have interested shopping along with the entertainment in organized retail Many consumers
have perceived shopping as fun full experience.
Maximum respondents agree that now a day’s our major part of shopping is based on impulse buying. It
was based on planned buying previously.
On the basis of foregoing study, it is concluded that “Significant changes have taken place in
consumer life style in Nashik city”.
-
The Fourth hypothesis for this study is “Different schemes offered by the organized retail shops
influence consumer shopping behaviour”.
For the testing of this fourth hypothesis the researcher has collected the data from the consumers’
buying from organized retail sector and the employees’ working at organized retail sector:
-
The researcher has tested the above data at 5% significant level. Chi-square computed value for above
data 7.95 is greater than table value of 84 on 01 degree of freedom. Hypothesis is accepted.
-
It has been analysed that, majority of consumers e. 34.70% and 24.42% are “strongly agree”
and “agree” with the statement that different schemes offered by organized retail format
influence for more shopping. Very few consumers are disagree and strongly disagree (i.e. 20.80%) with
the statement different Schemes offered by organized retail format influence for more shopping.
-
Majority of employees 14% and 33% (i.e. respectively in total 51.33%) are “strongly agree”
and “agree” to different Schemes offered by the organized retail shop influence consumer
shopping behaviour. Very few employees (i.e. 34.66%) are “disagree” and “strongly
disagree” with it. Therefore it has been concluded that the “Different schemes offered by
the organized retail shops influence consumer shopping behaviour”.Hence the Hypothesis is
accepted.
-
Consumer Shopping behaviour
-
It has been observed that 38.20% respondents are agreed with the view that “Main purpose to visit
organized retail shop is lifestyle”.
Majorly youth consumer group and working age group included in it. 30.02% respondents are agreed to
that, the purchase of cloth also important purpose for visiting organized retail shop.
It has been concluded that new life style, clothing and purchase grocery are main purposes to visit
organized retail shop. It is verified that there is an association between gender, age group, monthly
income level and purpose of consumer to visit organized retail shop.
Hence, it is concluded that purpose of consumer to visit organized retail shop is related with gender,
age group, monthly income.
-
33.76% respondents prefer organized retail shop due to good offers. 27.80% respondents prefer organized
retail shop due to large variety, 10.51% respondents preferred organized retail shop because of pleasure
shopping.
It is concluded that good offers, large variety, pleasure of shopping are main motives/reasons of
consumers to visit organized retail shop. It has been analysed that there is an association between
gender, age group, educational qualification, monthly income level and different motives/ reasons of
consumers to visit organized retail shop.
It is concluded that “Motives/ reasons of consumers to visit organized retail shop is associated with
gender, age group, education qualification, monthly income”.
-
It is found that, majority of (30.14%) respondents appreciate family as main source of information,
29.44% respondents consider friends as source of information.
It has been concluded that, friends, families are the most important sources of information for
consumers. It has been analysed that there is an association among gender, age group, educational
qualification, monthly income level and source of information.
It has been concluded that the “Source of information is associated with gender, age group, educational
qualification, monthly income”.
-
It has been observed that, 31.31% respondents appreciate “retail shop location and side” for the
selection of organized retail sector, 28.97% respondents appreciate “retail shop image” for the
selection of organized retail
sector, and 29.91% respondents prefer “retail shop atmosphere” for the selection of organized retail
sector.
It has concluded that “retail shop location and side” is the most important factor for selection of
organized retail shop. “Retail shop image and retail shop atmosphere” play very important role for the
selection of retail shop.
-
The analysis shows that 32.01% respondents agree elders as major decision influencers in shopping at
organized retail shop. 29.90% respondents consider friends as major decision influencers in shopping at
organized retail shop.
Therefore it has been concluded that elders and friends are major decision influencers on shopping at
organized retail shop.
-
It has been concluded that, consumers are satisfied and gaining good shopping experience in organized
retail shop. There is no gap present between the expectation before shopping and actual shopping
experience.
-
It has been analysed that, majority (26.87%) respondents spend Rs 2000 and above in a month at organized
retail shop. 25.35% respondents spend Rs 1001-1500 in a month at organized retail shop. It has been
concluded that maximum consumers spending more than Rs 2000/- in a month. Maximum consumers have liberal
spending nature with high buying capacity. Very few consumers (i.e. 11.21%) have conservative spending
(Rs 0-500 in a month). It has been analysed that there is an association among age group, monthly income
level with spending at organized retail shop.
It has been concluded that “Spending at organized retail shop is associated with gender, age group,
educational qualification, monthly income”.
-
It has been observed that majority (30.22% and 22.66%) of respondents preferred debit card and credit
card as modes of bill payment at organized retail shop.
It has been concluded that Debit cards and Credit cards (Plastic money) are the most famous modes of
bill payment in mall culture. Coupons are least preferred options for bill payment at organized retail
shop. It has been analysed that there is an association among age group, educational qualification,
monthly income level and mode of bill payment at organized retail sector.
Hence it is concluded that “mode of bill payment at organized retail shop is associated with gender, age
group, educational qualification, monthly income”.
-
The result shows, 53.50% respondents have membership card of organized retail shop and 46.50%
respondents don’t have membership card of organized retail shop.
It is reflected that maximum consumers are loyal and regular buyers of organized retail shop. It has
been analysed that there is an association among gender, age group, educational qualification,
membership card. It has been concluded that “membership cards are associated with gender, age group,
educational qualification, monthly income”.
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Changes in Organized Retail Sector
-
16% and 44% (i.e. 60%) employees are “strongly agree” and “agree” that there are significant changes in
organized retail sector in Nashik city. Very few respondents (24%) are “disagree” and “strongly disagree”
that there are significant changes in organized retail sector in Nashik city. It is concluded that, there
are significant Changes in organized retail sector in Nashik city.
-
62% respondents appreciated creating private label is new changing trend in organized retail sector in
Nashik city. 62.66% respondents appreciate various offers and discounts are new changing in trends organized
retail sector in Nashik city. It has been concluded that creating private label, promoting various offers
and discounts are major new trends in organized retail in Nashik city.
-
90% employees at organized retail shop agree to, there is a significant change in sale volume due to
different scheme offered by organized retail shop. Only 10% responses are negatively about it. But the
respondents are not ready to tell exact amount of change (figure) observed in sale volume due to different
schemes. It has been concluded that, there is a significant change in sale volume due to different scheme
offered by organized retail shop.
-
92% employees at organized retail shop agree that, there is a significant change in footfall due to
different schemes offered by organized retail shop. Only 08% are negative about it. It has been concluded
that, there is a significant change in footfall due to different scheme offered by organized retail
-
Majority of employees’ 22% and 67% (i.e. 58.67%) are “strongly agree” and
“agree” on the view that “Overall image of organized retail shop in Nashik city has
changed”. Very few employees’(i.e. in total 26.66%) are “disagree” and
“strongly disagree” that the overall image of organized retail shop in Nashik city is changed.
It is concluded that, “Overall image of organized retail shop in Nashik city has changed.”
-
Majority of employees’ 28.68% and 31.33% (i.e. in total 59.99%) are “strongly agree” and
“agree” that “Interior and exterior atmospheric factor of organized retail shop in Nashik
has changed”. Very few employees’ (26.66%) are “disagree” and “strongly
disagree” with “Interior and exterior atmospheric factor of organized retail shop in Nashik has
changed”.
-
Major Changes in organized retail sector:
-
Change in Market Size: Retailing in India is emerging as one of the largest industry with total market
size of USD 320 billion in 2006 and extended USD 421 billion in 2010 growing at healthy CAGR of 5% till
-
Change in organized retail market share 4% to 44% and projected to be 9 per cent of total retail market
by 2015 and 20 per cent by 2020. In a span of last 10 years, organized retail has expanded in urban
cities and makes an entry in semi-urban and rural areas. In 2007 organized retail market was 4 percent
of the total retail, that is around Rs 67,310 crore and expanded to compound at 27 percent per annum,
aggregating to Rs 1,75,103 crore (7.44 percent of the total retail) in 2010-11. Organized retail
projected to be 9 per cent of total retail market by 2015 and 20 per cent by 2020
-
Significant changes in retail format - Conventional Formats to Modern retail formats
-
Foreign Investment and Employment opportunity has increased in organized retail
-
Change in reforms (2001-2012): UPA government has hung an ‘Open’ sign for foreign The
cabinet has approved for 51% FDI in multi-brand retail sector and 100% FDI in single brand. The policy
will allow global retailers to set up shops in the country's $450 billion (Rs. 2,500 crore) retail
sector, and is aimed at drawing more overseas investment and taming inflation.
Till 2011, Indian central government unused to FDI in multi brand retail, unfriendly foreign groups from any
ownership in supermarkets, convenience stores or any retail outlets. Even single brand retail was restricted to
51 per cent ownership and a ritual process.
In Nov 2011, India's central government declared retail reforms for multi brand store and single brand stores.
These market reforms covered the way for retail modernization and competition with multi brand retailers such as
Wal-Mart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple. The announcement
sparked activism, both in opposition and in support of the reforms.
-
Limitations In Organized Retail Sector
Maximum respondents don’t like to pay for parking. Many respondents want help from the sale persons during
buying process. Maximum respondents said premium prices for many products which are not affordable to them; such
consumers want value format. Respondents want more discounts, offer which are affordable to middleclass
families.
It has been concluded that pay parking, less involvement of sale person during buying process, premium price,
credit facility, lack of relationships are limitations of organized retail shop.
In unorganized retail sector customer enjoyed personal relationship touch of retailer but in organized retail
sector customers do not enjoy this personal relationship touch.
7.2 Recommendations:
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“Purchasing pattern of consumer and Impulse buying behaviour are interrelated to each other in
organized retail sector”. Thus retailer should develop special theme to encourage impulse buying
-
For encouraging unplanned buying pattern means to encouraging impulse buying pattern; retailers
should use
special occasions, use festival and develop themes. Theme should be based on visual merchandising. Retailers
should develop theme on the bases of seasons or occasions e.g. New year, Christmas, Summer, Holi, Diwali etc.
Events and festival like world cup/ Ganpati Utsav etc can also be used as a theme.
For e.g. Holi theme with colorful accessories, bowls/packets containing colors, pichkari etc. should be
displayed.
This can be used to encourage the unplanned buying pattern of consumers
-
Maximum consumers have impulse buying behaviour; it means a lot of scope for retailer to tap consumers
pocket Retailers have to excite consumer for more buy by various discount scheme, offers and display.
-
“Motivating factor for actual buying and various discount schemes are interdependent in organized
retail sector”. The retailers should develop various discount schemes to motivate consumers during
actual
-
The Researcher has observed that maximum respondents appreciate “Sabse Sasta Din” and
“Maha Bachat” as most tempting schemes. These schemes are motivating factors for actual
buying. Thus organized retailer should develop schemes base on Each Day Low Prize which is followed
by many big retailers like Wal-Mart.
-
Good offers, large variety, pleasure of shopping, fun full experience are main motives/ reasons of
consumers to visit organized retail Organized retailer should always provide new offers with large
variety of goods and services to make consumer satisfied. They should provide fun full experience,
pleasure during shopping.
-
“Emergence of organized retail sector and Changes in consumer shopping behaviour are interdependent on
each other”. The retailers should adopt many emerging trends in organized retail sector to retain
-
The researcher has analysed that significant changes have taken place in organized retail
Creating private label, quick home or phone delivery, diversifying into sale of SIM and mobile, E-tailing,
various offers and discount are major new emerging trends in organized retail sector. Thus retailer should adopt
these emerging trends in organized retail sector.
-
Consumers are attracted towards modern retail format and it is the sign of changing consumer shopping
Shopping mall and CIRO are preferred shops by the consumers. Retailer should point out this change and try
to retain consumers.
-
“Different schemes offered by the organized retail outlets influence consumer shopping
behaviour”. The retailers should influence consumer by developing various schemes e.g. special offer
on festival, discount schemes, weekend offers and seasonal
-
Consumer Shopping Behaviour
-
Majority of consumers (Between 26-40) visit the shopping malls with their Retailer should make special
provision for this age group. Mostly these groups want everything under one roof which results in the saving in
costs as well as in time.
At the same time 15-25 age group is most neglected age group for this untapped segment the retailer should make
special arrangement in themes of entertainment, game zone, and restaurant. This age group has definitely got the
purchasing power (in terms of pocket money). They are visiting the malls more for having fun and passing their
time rather than making the purchases.
For the elder age group retailer should develop new format which will increase interest and buying habit of
elder age group or which will concentrate on health care, fun, or elder clubs.
-
The Retailers should follow six ways to attract youth
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College/school fashion show: College/school fashion shows in central They arrange this fashion show
at
Mall. Each youngster who participates brings along an average of six families and friends to mall to watch the
fashion show.
-
Campus Promotion: If the Mall is situated near a college. Arrange a table at colleges to introduce new
students about Mall. Give store coupons and lucky draw prizes. The shopping habits begin due to this
activity. Many schools and colleges will be pleased to offer the counter at orientation or during the first
week of college and school to offer
discounts and prizes to students.
-
Day Contest: Day contests at shopping mall mainly included special events on Labour Day, Independence Day
and Mother Arrange contest for youngsters who have birth date around Independent day or Labour Day. Have the
youngsters register at any of participating stores. The winner is the youngsters whose birth date closest to
12:01 a.m. on Independence Day! The lucky youngster wins clothing, from one of store. Convey the details to
radio stations and newspapers about Day contest. It’s a grand public relations chance. Retailer can get a
newspaper or radio station to sponsor the program.
-
Back to college: Make a back to college shopping listing or register/catalogue that lists where students can
find a range of back to college Distribute this list by the mail or drop it at college.
-
Welcome Students: Arrange a welcome event for Give them a chance to use coupons, leaflets for shopping.
-
Tie up with college as a sponsor for some event or youth
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Maximum educated consumers buy from organized retail Educated consumers, the elite class preferred to visit
organized retail shop. Retailer should consciously focus on this class about marketing communication,
service.
-
Maximum consumers are from high buying capacity therefore retailer should focus to expand their basket size
by tempting
-
Shop preference or shop choices decision is based on consumers’ gender, age group, educational
qualification and monthly Thus retailers should analyzed demographic profile of target segment and develop
retail format by considering gender, age group, educational qualification, monthly income of target segment.
-
Maximum consumers prefer weekends shopping and the first week of a month (After salary date) shopping.
Footfalls in organized retail shop are high in weekends and first week of a month. Retailers should make
required arrangement for these weekends in terms of manpower planning, availability of goods and services,
special offers, discounts scheme for Housewives, young consumer groups frequently visit organize retail shop
for shopping.
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Purchase frequency of consumers is related to gender, age group, educational qualification, monthly income.
Retailers shall make arrangement of goods and services for consumers who have maximum purchase frequency.
For example housewives, young consumer group are frequently visit organize retail shop for shopping for that
the retailers can make necessary provision to satisfy these consumer
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Life style, clothing and purchase grocery are main purposes to visit organized retail shop. The Retailer
should give priority to this segment and provide variety, offers on it for attracting and retaining
Purpose of the consumer to visit organized retail shop changes as there is change in demographic profile of the
consumer. Retailer should identify different purposed with respective to changes in demographic profile for
serving different segment.
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Friends and families are most important source of information for consumers. Organized retailers use these
two as main sources for attracting consumers. Publicity, road shows, advertising in local media is important
tools for influencing family and
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“Retail shop location and side” is the most important factor for the selection of organized
retail shop. “Retail shop image and retail shop atmosphere” play very important role on
selection of retail shop. For providing good shopping experience to consumer retailer should properly
arrange location, image and atmospheric of
11). Elders and friends have major influence on shopping at organized retail shop. In this case if the elders
and friends are coming for shopping to assist consumer in buying process for that retailers should provide
atmospheric, experience, display, offers to this third party to influence consumer for shopping. Retailer should
excite third party
i.e. elder and friends to influence consumer for buying.
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Maximum consumers have liberal spending nature with high buying capacity. Maximum consumers are spending
more than Rs 2000/- in Very few consumers have conservative spending (Rs 0-500 in month). This is change in
shopping behaviour conservative spending to liberal spending. Retailer should excite consumer to buy more
than what they plan. Try to expand the basket size of liberal consumer.
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Debit cards and credit cards (Plastic money) are the most famous mode of bill payment in mall culture.
Coupons are least preferred options for bill payment at organized retail Retailer can tie up with many
banks, debit card - credit cards by co-branding and provide the bonus point to consumers on bases of their
shopping. Retailer should make necessary arrangement like swapping machine.
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Membership card of organized retail shop is an indication of customers’ loyalty. For gaining shopping
points membership card holder doing repetitive purchase. Retailer should penetrate maximum membership card
to the
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Shop selection is majorly depend upon promotions and offers, convenient parking, better services, and one
stop Retailers should focus on it. Consumers always complain about parking space, paid parking for this
issue retailer should refund parking fee on specific amount of buying.
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Maximum customers are satisfied after shopping at organized retail shop. It is good for retailer that many
consumers are satisfied. Some customers complain about offers, discount, price level, paid parking solve
this by analyzing consumer feedback
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There are significant changes in post purchase action after purchasing at organized retail shop. Retailer
should be happy that maximum changes are positive for organized retail shop. Retailer should maintain
consistency in this
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In Nashik majority of consumers are using offline shopping to enjoying pleasure of shopping and fun full
entertainment at shopping mall. Retailer need to wait some time for virtual store and virtual shopping in
Nashik
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There is a need to provide seating arrangements in the shopping area because constant walking consumers feel
exhausted, their children start crying for some seating place and because of this consumer think to leave
the shopping mall and go This will certainly effect on losing the possible sales. It is verified fact that
more the time consumer spends in the organized retail format more is the chance that they will buy.
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Consumer wish to buy grocery once in a month, cosmetic items a monthly, vegetable and fruits daily,
beverages and snacks on weekly and ready to eat food once in month. People prefer to buy products whenever
they required so organized retail shop must put all the items in shelves every
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Some people visit the organized retail format as free time activity so retail store should use strategy to
make income from such people retail store should charge for vehicle Place some items to boost impulse
buying.
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Due to rise of women in buying at organized retail format, retailer should keep items which can gain the
attention of the
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Changes in Organized Retail Sector
Organized retailers situated at shopping malls have realized that they have to make whole shopping destination
for the consumers which has a mix of retail stores, entertainment places, eating joints which offers consumers
the whole shopping experience. The promoters should take the consultancy from experts to make a fair tenant mix
so that the consumers are able to get everything they want under one roof. It shall satisfied consumers
intention of coming to the shopping mall. The retailers should make a unique image of the shopping malls by the
process of segmentation and formation of specific shopping environment. For example, the brands for price
sensitive consumers and the high end luxurious brands should not be put under one roof. This will assist them
retain viewers belonging to different customer segments. Apart from this, the organized retailers can also
encourage shopping malls as specific shopping destinations. For example, there would specialise malls like
specific mall for bags, mall for furniture, and mall for Jewellery etc.
After analysing changes in consumer shopping behaviour and changes in organized retail sector, research
suggested some innovative ways to attract consumers:
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A Balloon can be fixed with the organized modern retail shop and the logo should be part at the entrance of
the The balloon can be of any dark color showing the logo of the brand. It will be noticeable from far away
as well as will emphasize the logo.
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Discos and clubs: Modern retail stores may have tie ups with discos and clubs for the consumers or provide
some space for disco and clubs, Where consumers can stand to win gift vouchers and prizes from
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Fashion shows: Modern organized retail can organizes fashion show every year Mr. and Ms. Nashik in their
store and win attractive
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Tourist Point: A tourist point should be developed in shopping mall, especially for tourists who want to
visit famous
places in Nashik City. They can plan their trips with the help of shopping corner. Shopping Mall may provide
them vehicle. They can enjoy their holidays along with shopping.
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Health Centre/Gym Facility in shopping Mall: That would help to attract people every day at shopping
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Mom Corner: Where Mom can keep her child for safety and protection and can do Shopping
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Beauty Corner: Provide special tips and counselling about Retailer can sale some beauty product along with
beauty counselling.
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Game Zone and Personal
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Set up Customer Advisory Boards to get suggestions from customer and give them a chance to voice their
opinion about modern retail
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Strategy to offer discount on Taxi Services to its On the bases of loyalty program.
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Use some space for payment centre for telecom services, medical stores and health clinic banks,
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Turn mall parking into a profit generator: Retail organization makes parking lot into revenue generators
with an exclusive advertising Even parking space can use for vehicle servicing and earn profit on it.
11). Promotional ways and new offer
Organized retail format can accept a variety of promotional ways like,
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Widespread advertisement in newspapers
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Advertisements should be prepared in famous English and different other state
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Leaflets/advertising material can be circulated in face of colleges and school; it can be done during off
season
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V. and Radio use for advertising purpose.
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Emails and SMS can be sent to the consumers for intimating various schemes,
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Banners, Posters, Hording can be place on main areas so that it covers the population of
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Remedial Measures to Overcome the Limitations of Organized Retail Sector
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Less involvement of sale person during buying process, pay parking, premium price, credit facility
and lack of
relationship are limitations of organized retail shop.
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It is recommended that retailers should give refund parking charges on specific amount of For getting this
refund amount consumers will buy something from shopping mall and that footfall will actually convert into
sale.
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Retailer should increase service staff for assisting customers during buying There should be sufficient help
desk for helping customers.
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In Nashik for middle class families premium prices are not affordable to Retailer should develop a value
format.
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For credit facility - Retailer should tie up with banks by co-branding. Retailer should provide credit card
facility to Retailer can focus on private label which will affordable to consumer.
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In unorganized retail sector customers enjoy personal relationship touch of In organized retail sector
customers not have enjoyed personal relationship touch.
For this personal relationship organized retailer may use relationship management. Organized retailer can
maintain all possible data base of consumer and will use this data based for greeting customer on special
occasions.
Example SMS, greeting cards on birthday, this is one to make relationship with consumer and give them personal
touch.
Friendly behaviour of staff is necessary to satisfy consumer and this is one of the key factors on which these
shopping malls are scoring very high. When consumers enter into the shopping mall and even the security guard
standing at the door wishes consumers good afternoon/evening which makes the consumers feels special.
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Bibliography
-
Pancholi (2007) : “Growth off the Shelf”, Hindustan Times, New Delhi, July 22 2007.
-
Sinha K. & Banerjee A(2004): “Store Choice Behaviour in an Evolving Market”, International
Journal of Retail
and Distribution Management, Vol.32 No. 10, pp 482-494.
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Millan S. & Howard E(2007): Shopping for Pleasure? Shopping Experiences for Hungarian Consumers
International Journal of Retail and Distribution Management, Vol. 35 No. 6, pp 474-487.
-
Swapana Pradhan(2007) : “Retailing Management”, Tata McGraw-Hill Publication Company
Ltd, New Delhi, 2nd Edition.
-
ICRIER(2007) : "ICRIER Begins Survey of Indian Retail " 19 March 2007.
-
Sathyaraj (2006) : “Definition of Unorganized Retailing”, April, 2006-04-01 in
http://retail-industry.blogspot.com.
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McKinse Quarterly(2005) : “Winning the Indian Consumer”, Special Edition.
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Sheejih A(2008) : “Organized Retail Market Boom & The Indian Society”, International
Conference on Marketing & Society,IIM-K.
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J. Lumba(2007) : “The Art of Retailing”, Tata McGraw-Hill Publishing Company Limited, New Delhi.
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Suja Nair(2008) : “Retailing Management”, Himalaya Publishing House, New Delhi, 3rd Edition.
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White Book(2006) : Marketing White book, 2006, Business World, 114-15.
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NCAER(2005) : NCAER Research on Indian Consumers, The Great Indian Consumer,
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AT Kearney(2006) : The Global Retail Development Index,( 2006) , AT
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Del I Hawkins(2007) : “Consumer Behaviour”, Tata McGraw-Hill Publishing Company Ltd, New Delhi,
9th Edition.
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Chetan Bajaj(2005) : “Retailing Management”, Oxford University Press, New Delhi, 1st
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Beri C.(2004) : “Marketing Research”, TATA McGraw-Hill Published Company, New Delhi, 3rd
Edition.
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Nargundkar : “Marketing Research”, TATA McGraw-Hill Published Company, New Delhi, Rajendra(2008)
3rd Edition.
Websites
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indianretailforum.com
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indianretailsector.com
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http://www.nashikcitycentre.com/about_mall.php
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http://www.technopak.com
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http://www.ibef.org
Authored by
Dr.Yogesh Gaikwad,
MET, Nashik
Dr. Nilesh Berad,
MET, Nashik